1. The North American Industry Classification System (NAICS)
“Classification in the Economic Census”

2. Outline of Tutorial: NAICS: What is NAICS? Why was NAICS developed?
NAICS Structure
NAICS Sectors
NAICS Future
NAICS and the Economic Census:
Collection of data
Classification
Dissemination of data
Summary
Contact Information 

3. What is Classification?
the systematic grouping of things into categories
based on shared characteristics.

4. What is the North American Industry Classification System (NAICS)?
a numerical, hierarchical classification system that
groups all business establishments into industries
based on production process.
the foundation on which economic census data is
collected, tabulated, analyzed, and disseminated.
a common language used among all
U.S. federal statistical agencies.

5. Why was NAICS Developed?
to recognize fundamental shifts in the U.S. economy
(new, advancing technologies and service industries).
to achieve comparability among the economies
of U.S., Mexico, and Canada.
to ensure industry sector (2-digit) compatibility
with the International Standard Industrial
Classification System (ISIC).
to preserve time-series continuity.

6. What is the Structure of NAICS?
numerical
hierarchical
detail level from a 2-digit sector
to a 6-digit national industry

7. NAICS is standardized among the three North American countries
The Structure of NAICS
SECTOR 2-digit xx
SUBSECTOR 3-digit xxx
INDUSTRY GROUP 4-digit xxxx
NAICS INDUSTRY 5-digit xxxxx
U.S. INDUSTRY 6-digit xxxxxx
 NAICS is standardized among the three North American countries
to the 5-digit level.

8. An example of NAICS Structure
SECTOR Accommodation and Food
Services
SUBSECTOR Accommodation
INDUSTRY GROUP Traveler Accommodation
NAICS INDUSTRY Hotels (except casino hotels)
and Motels
U.S. INDUSTRY Hotels (except casino hotels)

9. An example of NAICS Structure
SECTOR Manufacturing
SUBSECTOR Computer and Electronic
Product Mfg.
INDUSTRY GROUP Computer and Peripheral
Equipment Mfg.
NAICS INDUSTRY Computer and Peripheral
U.S. INDUSTRY Electronic Computer Mfg.
Computer Storage Device Mfg.
Computer Terminal Mfg.
Other Computer Peripheral

10. What are the NAICS Sectors?
There are 20 NAICS sectors. The economic census covers 18 of those.
11 Agriculture, Forestry, Fishing and 54 Professional, Scientific, and Technical
Hunting Services
21 Mining Management of Companies and
22 Utilities Enterprises
23 Construction Administrative and Support and Waste
Manufacturing Management and Remediation Services
42 Wholesale Trade Educational Services
Retail Trade Health Care and Social Assistance
Transportation and Warehousing 71 Arts, Entertainment, and Recreation
51 Information Accommodation and Food Services
52  Finance and Insurance 81 Other Services (except Public
53 Real Estate and Rental and Leasing Administration)
92 Public Administration

11. What is the Future of NAICS?
NAICS is a living system, undergoing revision and
updates in 5-year cycles to reflect the changing economy.
- add industries
- clarify definitions
- potential restructure of rapidly changing industries
For 2007, ISIC (United Nations) will be in greater
agreement with NAICS.

13. NAICS and the Economic Census
The economic census collects, tabulates, analyzes, and publishes detailed information about the Nation’s economy, including the number of establishments, measures of output, payroll, and employment on a NAICS basis every five years for the years ending in '2' and '7'.
The economic census is “indispensable to understanding America’s economy.”

14. NAICS and the Economic Census
Collecting the Data
we mail out approximately 4.7 million economic census
report forms.
- there are over 600 versions of the economic census report form, each tailored to particular NAICS industries.
- the content of the forms was developed in consultation with data suppliers, accounting organizations, trades associations, other data users, and the U.S. Office of Management and Budget.
- NAICS codes are present on the forms.
data is collected for more than 11,000 NAICS industries.

15. NAICS and the Economic Census
Sample Report Form

16. NAICS and the Economic Census Proper Classification
conduct a mail-out/mail-back, and electronic census
with telephone follow-up and support.
identify establishments that seem miscoded or partially
coded.
use of interactive coding tools.
use of specially tailored forms by industry allow for
additional questions that help to decipher NAICS
classification. Please see form.

17. Census Bureau NAICS Website Finding your NAICS code

18. Census Bureau NAICS Website Finding your NAICS code

19. NAICS and the Economic Census Disseminating the Data
2002 Economic Census data is/will be available on the
Internet and on DVD-ROM. Only a few summary reports
will be available in print.

20. All of the data from the 2002 Economic Census can be found here at:

21. Summary: 1. NAICS is a hierarchical classification system that starts
with the 2-digit sector and ends with the 6-digit national
industry.
2. There are 20 NAICS sectors.
3. NAICS classifications are based on the principle of
“production process”.
4. NAICS is an international coding system developed by
Canada, Mexico, and the United States.
5. The entire economic census is conducted on a NAICS basis.

22. Contact Information:
For information on NAICS, contact:
Scott Handmaker
Chief, Economic Classifications Operations Branch
NAICS website:
Economic Census website: